Government Considers Raising Minimum Down Payment Requirement

CTV says Ottawa is
considering raising the minimum down payment for homebuyers as well as reducing
the amortization period in order to stop some consumers from taking on too much
debt.

In an interview with CTV Question
Period, to be aired next week, Finance Minister Jim Flaherty says the measures
will be taken if there's evidence of excessive demand in the housing market.

Flaherty says the new measures
would target consumers "who are taking on obligations that they will not
be able to handle in the future when the interest rates do rise."

He says the likely measures the
government will take are to increase the size of the down payment from 5%
"to a higher figure" and to reduce the amortization period "from
a maximum of 35 years to something less."